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British Journal of Management, Vol.

31, 325–343 (2020)


DOI: 10.1111/1467-8551.12396

Managers’ Resources for Authentic


Leadership – a Multi-study Exploration
of Positive Psychological Capacities and
Ethical Organizational Climates
Martin P. Fladerer and Susanne Braun1
Center for Leadership and People Management, LMU Munich, Geschwister-Scholl-Platz 1, Munich, 80539,
Germany 1 Durham University Business School, Durham University, Mill Hill Lane, Durham, DH1 3LB, UK
Corresponding author email: martin.fladerer@psy.lmu.de

While authentic leadership is highly valued in today’s business world, managers do not
necessarily have the resources to attain it. Building on conservation of resources theory,
we propose a conceptual model to address how personal and contextual resources predict
authentic leadership. Study 1 analyses the day-to-day variability in managers’ positive
psychological capacities as personal resources in relation to changes in authentic leader-
ship. In addition, it tests ethical organizational climates as stable, contextual resources
for authentic leadership. In Study 2, we replicate our results on the between-person level
and extend the research model by exploring promotion focus as a link in the relation-
ship between personal resources and authentic leadership. Evidence from an experience
sampling study with 89 managers surveyed daily on 10 consecutive working days (Study
1) and a field survey of 130 managers at two points in time (Study 2) supports the hy-
pothesized role of personal resources and promotion focus for authentic leadership. In
both studies, only principled but not benevolent ethical organizational climates emerged
as a contextual resource for authentic leadership. We discuss the implications for current
management research and practice.

Introduction and Avolio, 2003), scholars call for a better un-


derstanding of the theoretical underpinnings of
Authentic leadership (AL) is highly valued in AL and greater plurality in methodological ap-
today’s business world as it relates to positive proaches to fully develop its theoretical and practi-
outcomes for employees and organizations (Banks cal merit (Alvesson and Einola, 2019; Iszatt-White
et al., 2016; Gardner et al., 2011; Gill and and Kempster, 2018; Sidani and Rowe, 2018).
Caza, 2018; Hoch et al., 2018). While substantial In the present paper, we seek to advance AL the-
progress has been made in the study of AL since its ory and its managerial implications in three ways.
introduction (Avolio and Gardner, 2005; Luthans Firstly, we build on conservation of resources
(COR) theory (Hobfoll, 1989, 2001; Hobfoll
Both authors contributed equally to this work. We sin- et al., 2018) – a well-established theory in the
cerely thank Hannes Leroy, Birgit Schyns, Maria Agthe organizational behaviour literature (Halbesleben
and Dieter Frey for their excellent feedback on ear- et al., 2014) – to better understand the antecedents
lier drafts of this manuscript. We sincerely thank Simon of AL. According to COR theory’s distinction
Grund for providing comprehensive support with the between personal and contextual resources, we
multiple imputation procedure.
We are grateful for the financial support of this research predict that managers draw from positive psy-
received from Durham University Business School. chological capacities (i.e. personal resources),


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326 M. P. Fladerer and S. Braun

which are proximate to the self, as well as the 2005; see also Cooper, Scandura and Schriesheim,
ethical organizational climate (i.e. contextual 2005; Luthans and Avolio, 2003; May et al., 2003),
resources), which is grounded in the social context in the study of AL ‘these good intentions have
(Halbesleben et al., 2014; Hobfoll, 2002; ten later been largely replaced by static [ . . . ] concep-
Brummelhuis and Bakker, 2012). This distinction tualizations and empirical studies’ (Alvesson and
also speaks to recent views in COR theory that Einola, 2019, p. 387). Following these recent re-
‘resources exist in caravans’ (Hobfoll, 2011, p. views and meta-analyses (Kelemen, Matthews and
116), counterbalancing the emphasis on studying Breevaart, 2019; McClean et al., 2019; Podsakoff
one resource at a time (Hobfoll et al., 2018). et al., 2019), we explore AL at the day level.
Assuming that ‘work and organizational settings In sum, adopting a resource-based perspective
can create ecologies that foster engagement and grounded in COR theory (Halbesleben et al.,
resilience’ (Hobfoll, 2011, p. 117), we argue that 2014; Hobfoll, 2001, 2002, 2011; Hobfoll et al.,
both personal resources (i.e. positive psychological 2018), we apply two complementary methodologi-
capacities) and contextual resources (i.e. ethical cal approaches to explore personal and contextual
organizational climates) facilitate managers’ AL. resources as predictors of AL and incorporate
Secondly, responding to current debates in the temporal dynamics (Fischer, Dietz and Antonakis,
management literature to what extent promotion 2017; Kelemen, Matthews and Breevaart, 2019;
focus – a self-regulatory orientation towards McClean et al., 2019; Podsakoff et al., 2019;
individuals’ ideals and aspirations (Higgins, Shamir, 2011). Study 1 employs an experience
1997) – explains why managers show positive sampling design to quantify the proportion of
leadership behaviours (Johnson et al., 2017; Kark within-person variance in AL over time and how
and van Dijk, 2019; Sassenberg and Hamstra, personal resources drive these fluctuations (Kele-
2017; Tuncdogan, van den Bosch and Volberda, men, Matthews and Breevaart, 2019; McClean
2015), we apply COR theory to explore the role of et al., 2019). Furthermore, we investigate ethi-
managers’ promotion focus as a mediator linking cal organizational climates as stable contextual
personal resources to AL. Luthans and Avolio resources for AL (Luthans and Avolio, 2003;
(2003) positioned self-regulation as a central part Petersen and Youssef-Morgan, 2018). In Study 2,
of AL (see also Gardner et al., 2005). However, AL a field study with two points of measurement, we
scholars’ perspectives on the role of self-regulation examine promotion focus as an underlying process
differ and have not been tested empirically (Avolio linking personal resources and AL (Kark and van
and Gardner, 2005; Gardner et al., 2011). We Dijk, 2019). Here we test personal resources and
test whether the alignment with one’s ideal self as AL on a between-person level of analysis and repli-
inherent in self-regulatory promotion focus medi- cate the findings of the role of contextual resources.
ates the relationship between personal resources The multi-study approach allows us to construc-
and managers’ AL. tively replicate (Eden, 2002) and compare results
Finally, we incorporate the called-for temporal (Iszatt-White and Kempster, 2018; Xanthopoulou
element into management theorizing and research et al., 2009), thereby advancing the understanding
(Fischer, Dietz and Antonakis, 2017; Kelemen, of AL and COR theory at within- and between-
Matthews and Breevaart, 2019; McClean et al., person levels of analysis (Kelemen, Matthews and
2019; McCormick et al., 2018), especially in re- Breevaart, 2019; McCormick et al., 2018; Miller
lation to AL (Alvesson and Einola, 2019; Ibarra, and Bamberger, 2016; Podsakoff et al., 2019).
2015; Sidani and Rowe, 2018). Kelemen, Matthews Figure 1 summarizes the conceptual model of
and Breevaart (2019) argue that ‘studying lead- the present research.
ership in a daily fashion is critical [ . . . ] as it gives
unique insight that cannot be easily captured in
other ways’ (p. 2). Day-level research enables (1) Authentic leadership
testing of leadership theories at the within-person
level (see also McCormick et al., 2018); (2) in- AL means that managers enact their true selves
depth insights into the short-term processes of in the leadership role, and requires ‘being honest
leadership; and (3) the analysis of leadership in its with oneself [ . . . ], being sincere with others [ . . . ],
natural context. Despite its original formulation and behaving in a way that reflects one’s personal
as a dynamic phenomenon (Avolio and Gardner, values’ (Leroy et al., 2015, p. 1678). Authentic


C 2020 The Authors. British Journal of Management published by John Wiley & Sons Ltd on behalf of British
Academy of Management.
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Managers’ Resources for Authentic Leadership 327

Figure 1. Conceptual model of present research. In Study 1, the role of positive psychological capacities as antecedent of authentic leadership
was measured on the day level (within-person design). In Study 2, the role of positive psychological capacities as antecedent of authentic
leadership was measured on the general level (between-person design)

leaders demonstrate self-awareness in relation to as possessing high levels of self-knowledge and


their personal values, strengths and weaknesses, self-consistency. Nübold, van Quaquebeke and
and impact on others. Their internalized moral Hülsheger (2019) showed that managers’ mindful-
perspective manifests in actions guided by per- ness related positively to self- and other-ratings of
sonal values, even in the face of external pressures. AL, and that a mindfulness intervention enhanced
Through balanced processing, authentic leaders AL perceptions. In sum, current evidence points
encourage others to voice opposing points of to managers’ personal characteristics as well as
view and carefully consider these before reaching the organizational context as facilitating factors
conclusions. Authentic leaders show relational for AL.
transparency as they express their true thoughts At the same time, the current studies do not
and feelings (Avolio and Gardner, 2005; Neider inform us about at least three important issues.
and Schriesheim, 2011; Walumbwa et al., 2008). First, it remains to be addressed whether AL fluc-
While a wealth of empirical research supports tuates over short periods of time and what drives
the positive outcomes of AL for employees and these fluctuations (Kelemen, Matthews and Bree-
organizations (Banks et al., 2016; Gardner et al., vaart, 2019). Managers who act authentically on
2011; Gill and Caza, 2018; Hoch et al., 2018), one day may not necessarily do so tomorrow (cf.
only few studies investigated predictors of AL Breevaart et al., 2014; Johnson et al., 2012; Kele-
(cf. Petersen and Youssef-Morgan, 2018). Jensen men, Matthews and Breevaart, 2019). Johnson
and Luthans (2006) found that managers’ psy- et al. (2012) showed that (transformational) leader
chological capital related positively to AL. Pe- behaviours fluctuate substantially between days
tersen and Youssef-Morgan (2018) replicated this (within-person variance 37%). Original conceptu-
finding. Their results also showed a positive first- alizations of AL assumed such temporal dynam-
order correlation of perceptions of the organiza- ics on the day level (Avolio and Gardner, 2005;
tion’s psychological climate and AL. Peus et al. Cooper, Scandura and Schriesheim, 2005; Luthans
(2012) found that employees were more likely and Avolio, 2003; May et al., 2003), but research
to ascribe AL when they saw their managers has failed to study these fluctuations (e.g. Alvesson


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Academy of Management.
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328 M. P. Fladerer and S. Braun

and Einola, 2019; Ibarra, 2015; Iszatt-White and A resource-based perspective on authentic
Kempster, 2018). leadership
Second, previous research leaves unanswered
We build on COR theory (Halbesleben et al.,
why specific predictors such as personal resources
2014; Hobfoll, 1989, 2001; Hobfoll et al., 2018) as
enable managers to attain AL. We build on COR
a theoretical basis for understanding how and why
theory (Hobfoll, 1989, 2001; Hobfoll et al., 2018)
resources help managers to attain AL. The central
to test the role of managers’ promotion focus as
tenet of COR theory is that ‘people must invest
a mediating variable to explain why personal re-
resources in order to protect against resource loss,
sources facilitate managers’ AL (Johnson et al.,
recover from losses and gain resources’ (Hobfoll
2017; Kark and van Dijk, 2019; Sassenberg and
et al., 2018, p. 105). We apply COR theory’s princi-
Hamstra, 2017; Tuncdogan, van den Bosch and
ple of resource investment, arguing that managers
Volberda, 2015).
invest personal resources and contextual resources
Third, what is meant by ‘a positive, highly devel-
to attain AL as this facilitates further resource gain
oped organizational context and culture’ (Luthans
(Halbesleben et al., 2014). As COR theory assumes
and Avolio, 2003, p. 257) in the realm of AL
resource fluctuations (Halbesleben et al., 2014;
is yet to be fully understood (cf. Petersen and
Hobfoll, 2002), managers will show AL to the
Youssef-Morgan, 2018). Following recent empha-
extent that they have personal and contextual re-
sis on ethics in AL theory (Lemoine, Hartnell and
sources available. Researching personal resources
Leroy, 2019), we test the role of benevolent and
together with ethical organizational climates as
principled ethical organizational climates (Kish-
part of the contextual resources that facilitate
Gephart, Harrison and Treviño, 2010; Martin and
managers’ AL also answers Hobfoll et al.’s (2018)
Cullen, 2006; Victor and Cullen, 1988) as contex-
call for the study of resource caravans.
tual resources for AL from the perspective of COR
Managers struggle to attain AL due to a lack
theory (Hobfoll, 2011; Hobfoll et al., 2018).
of personal and contextual resources. Luthans
Temporal dynamics of authentic leadership and Avolio (2003) argued that managers need
‘positive psychological capacities and a positive,
Luthans and Avolio (2003) as well as Avolio and
highly developed organizational context and cul-
Gardner (2005) highlighted the dynamic nature of
ture’ (p. 257) to attain AL. Managers aspire to AL
AL. Cooper, Scandura and Schriesheim (2005) fur-
(George, 2007; Ibarra, 2015), striving to align their
ther suggested studying the temporal dynamics of
personal values, beliefs and goals with how they
AL as the extent to which managers have personal
behave ‘every day, in each and every interaction’
resources available from day to day. Incorporating
(May et al., 2003, p. 248). However, business prac-
temporal dynamics into the study of AL allows for
tice often requires them to make tough decisions,
a more fine-grained understanding of how and why
while lacking time to reflect and promote a bottom
managers lead authentically (Alvesson and Einola,
line that values profit over people (Peus, 2011).
2019; Ibarra, 2015). McClean et al. (2019) referred
In line with COR theory, we define resources
to three forms of temporal dynamics, describing
broadly as those entities (e.g. objects, states,
‘the degree and pattern by which leader behavior
conditions) which individuals perceive to support
changes over time’ (p. 481): (1) abrupt shifts; (2)
their goal attainment (Halbesleben et al., 2014).
gradual changes; and (3) short-term fluctuations.
Personal resources are proximate to the self,
Our research focuses on short-term behavioural
whereas contextual resources are external and
fluctuations, also termed the ‘ebb and flow’ of lead-
part of the social context (Hobfoll, 2002; ten
ership, as measured in experience sampling studies
Brummelhuis and Bakker, 2012). Specifically, we
(Podsakoff et al., 2019). Drivers of short-term
investigate three positive psychological capacities:
fluctuations in leadership are transient affective
self-efficacy, self-esteem and optimism. These rep-
and cognitive states linked to COR theory (Kele-
resent central personal resources in COR theory
men, Matthews and Breevaart, 2019; McClean
(Halbesleben et al., 2014; Hobfoll, 2002, 2011;
et al., 2019; McCormick et al., 2018), such as de-
Hobfoll et al., 2018). In addition, we test benevo-
mands (e.g. email load; Rosen et al., 2019) and the
lent and principled ethical organizational climates
availability (or lack of) resources (e.g. emotional
(Martin and Cullen, 2006; Victor and Cullen,
exhaustion; Whitman, Halbesleben and Holmes,
1988) as contextual resources. They represent an
2014).


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Academy of Management.
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Managers’ Resources for Authentic Leadership 329

organization’s ‘core and unassailable principles’ (cf. Hobfoll, 2011). Research typically combines
(May et al., 2003, p. 251) and play a vital role in them into an overarching personal resources
organizational functioning (Barraquier, 2011; van factor (e.g. Judge et al., 1998; Luthans et al., 2007;
Prooijen and Ellemers, 2015). Ethical organiza- Xanthopoulou et al., 2007), as we do in this work.
tional climates are contextual resources because Personal resources are stable to an extent (e.g.
they facilitate shared psychological environments, ten Brummelhuis and Bakker, 2012), but also vary
which allow managers to align their personal within short periods of time. In an experience sam-
values, beliefs and goals with their actions (Eagly, pling study by Xanthopoulou et al. (2009), per-
2005; Lemoine, Hartnell and Leroy, 2019; May sonal resources varied substantially over a 5-day
et al., 2003). period. Two recent meta-analyses also show that
self-efficacy and self-esteem exhibit a meaningful
proportion of within-person variability (i.e. 36% –
Positive psychological capacities as personal
McCormick et al., 2018; 39% – Podsakoff et al.,
resources
2019).
According to Xanthopoulou et al. (2007), per- Following COR theory’s principle of resource
sonal resources are ‘aspects of the self that are investment, managers who experience high levels
generally linked to resiliency and refer to individ- of self-efficacy, self-esteem and optimism are more
uals’ sense of their ability to control and impact likely to invest these resources towards attaining
upon their environment successfully’ (p. 123f). AL. In contrast, managers who experience low
They determine the extent to which employees levels of positive psychological capacities will
adapt to challenges at work (e.g. Hobfoll et al., protect their remaining resources (e.g. by acting
2018; Judge et al., 1998; Xanthopoulou et al., defensively) and are less likely to align their inner
2009). Employees draw from personal resources to and outer selves (Halbesleben et al., 2014; Hobfoll
increase desirable, resource-intensive behaviours et al., 2018). Specifically, managers who experience
such as speaking up (Ng and Feldman, 2012) and high levels of self-efficacy beliefs seek accurate
helping others (Halbesleben and Wheeler, 2015). information about their own abilities as well
In contrast, managers’ resource depletion relates as potential for further development (Luthans,
positively to abusive leadership and negatively to Youssef-Morgan and Avolio, 2015). Managers
transformational leadership (Byrne et al., 2014). who experience high levels of self-efficacy are
Drawing from this research, we argue that man- also better able to regulate their interpersonal be-
agers’ self-efficacy, self-esteem and optimism relate haviour (e.g. to overcome self-serving biases; Vohs
positively to managers’ AL (ten Brummelhuis and and Ciarocco, 2004). Managers who experience
Bakker, 2012; Xanthopoulou et al., 2007). Self- high levels of self-esteem are less susceptible to
efficacy incorporates individuals’ beliefs about external influences, which would otherwise keep
their ability to mobilize the motivation, cognitive them from enacting their true values (Pierce
resources and courses of action necessary to exe- and Gardner, 2004). Managers who experience
cute behaviour in a given context (Bandura, 1997; high levels of optimism reinterpret challenging
Stajkovic and Luthans, 1998). Self-esteem is ‘the situations positively, rendering them more likely
degree to which an individual believes him/herself to see personal development as ‘work in progress’
to be capable, significant and worthy as an orga- (Luthans and Youssef-Morgan, 2017) and seek out
nizational member’ (Pierce and Gardner, 2004, opportunities for learning when facing setbacks
p. 593). Optimism represents the cognitive ap- (Luthans, Youssef-Morgan and Avolio, 2015).
praisal of events, especially the reappraisal of In contrast, managers who experience low levels
negative or neutral situations (Seligman, 2006), as of self-efficacy are more likely to protect their
well as contingency planning (Luthans, Youssef- self-worth through self-enhancement and defen-
Morgan and Avolio, 2015). As resources ‘do not siveness (Kernis, 2003; Vohs and Ciarocco, 2004),
exist individually but travel in packs, or caravans’ reducing self-awareness and balanced processing.
(Hobfoll et al., 2018, p. 106; see also Hob- Individuals who experience low levels of self-
foll, 2011), self-efficacy, self-esteem and optimism efficacy are more prone to external influences
share common processes that drive motivation and rather than acting in line with their inner values
behaviour (Luthans and Youssef-Morgan, 2017; (Bandura et al., 2003). Low self-esteem also limits
Luthans et al., 2007) and are highly correlated expressing one’s true thoughts and feelings out of


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Academy of Management.
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330 M. P. Fladerer and S. Braun

fear of social judgement (Neider and Schriesheim, and supported by co-workers. For example, man-
2011; Walumbwa et al., 2008). Managers who agers will be more likely to draw on their positive
experience low levels of optimism will be more relationships with others in the organization when
concerned with their vulnerabilities, and less likely forced to make difficult decisions (George, 2007;
to reinterpret challenges positively (Seligman, Ibarra, 2015). According to COR theory, these re-
2006). In sum, we suggest that managers who lationships and social interactions form part of the
experience high levels of positive psychological contextual resources that are available to managers
capacities are likely to invest these personal (Hobfoll, 2011; Hobfoll et al., 2018). Following
resources towards AL, whereas managers who COR theory’s principle of resource investment,
experience low levels of positive psychological we therefore propose that managers in benevolent
capacities are less likely to do so. ethical organizational climates are likely to invest
these personal resources towards AL:
H1: Managers’ positive psychological capacities
are positively related to authentic leadership. H2a: A benevolent ethical organizational cli-
mate relates positively to authentic leadership.
Principled ethical organizational climates pro-
Ethical organizational climates as contextual
vide ethical rules and policies for ethical behaviour
resources
(Martin and Cullen, 2006). Actions are consid-
Although contextual resources are provided by a ered ethical when they comply with moral guide-
different source (i.e. social context), they are em- lines (Barnett and Vaicys, 2000). Codes of conduct
ployed in the resource investment process similarly raise managers’ awareness of ethical behaviours
to personal resources (Halbesleben et al., 2014). (Schminke, Ambrose and Neubaum, 2005; van
According to COR theory, when contextual re- Sandt, Shepard and Zappe, 2006) and encour-
sources nurture individuals’ aspirations, they are a age them to reflect their own values (Shamir and
second pathway to gaining further resources, such Eilam, 2005). Ethical rules and policies also reduce
as AL (Hobfoll, 2001). Hobfoll (2011) described uncertainty and accentuate personal accountabil-
nurturing and supportive types of resources that ity when making difficult decisions (May et al.,
organizational environments provide as resource 2003). Following COR theory, we position ethi-
caravans. Organizational climates define what con- cal rules and policies as part of the contextual re-
stitutes right and expected behaviour in an orga- sources that are available to managers within a
nization (Schneider, Ehrhart and Macey, 2013), principled organizational climate (Hobfoll, 2011).
and serve as contextual resources for employees Managers who experience principled ethical orga-
(e.g. Halbesleben et al., 2014; Hobfoll et al., 2018). nizational climates will feel a sense of certainty
Ethical organizational climates represent specific and guidance provided by the organizational envi-
contextual resources for AL (Avolio and Gardner, ronment. The principled climate guides managers’
2005; Eagly, 2005; Luthans and Avolio, 2003; May actions when they seek to attain AL. For exam-
et al., 2003; Walumbwa et al., 2008). ple, managers can draw on codes of conduct when
Several types of ethical organizational climates faced with moral dilemmas and struggling to make
exist (Victor and Cullen, 1988), and can be present the right decision (Lemoine, Hartnell and Leroy,
at the same time (Kish-Gephart, Harrison and 2019). Thus, in line with COR theory’s principle of
Treviño, 2010; Martin and Cullen, 2006). Benevo- resource investment, we propose that managers in
lent ethical organizational climates imply an over- principled ethical organizational climates are likely
arching concern for individual well-being. Em- to invest these personal resources towards AL:
ployees in benevolent climates share a mutual sense
H2b: A principled ethical organizational cli-
of care and concern for others (Victor and Cullen,
mate relates positively to authentic leadership.
1988). Experiencing appreciation from close
others is a valuable resource as interpersonal con-
nections give rise to feelings of ‘being in the right
place’ (Hobfoll et al., 1990; Sarason and Sarason, Study 1
2009). Even when they encounter setbacks and
struggle to achieve AL, managers in benevolent Study 1 analyses personal resources in the form
ethical organizational climates will feel accepted of positive psychological capacities (H1) and


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Academy of Management.
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Managers’ Resources for Authentic Leadership 331

contextual resources in the form of benevolent The average response time was 1.5 minutes for the
and principled ethical organizational climates morning survey and 2 minutes for the afternoon
(H2a, H2b) in relation to managers’ daily AL. survey. The average time between the comple-
tion of the morning and afternoon surveys was
10 hours and 20 minutes.
Method
Measures.
Sample and procedure. We recruited 134
German-speaking managers through Bilendi, Positive psychological capacities. We assessed
a professional research panel. Bilendi complies positive psychological capacities with six items
with quality norms for online research by multiple from Xanthopoulou et al. (2009) in the general
European research associations. Managers first survey (α = 0.82) and the 10 morning surveys
completed a general survey that assessed general (average α = 0.89) with two items each for self-
levels of AL, positive psychological capacities, efficacy (e.g. ‘When I think about work today, I feel
positive affect, perceptions of their organizations’ I could deal efficiently with unexpected events’),
benevolent and principled ethical organizational self-esteem (e.g. ‘When I think about work today,
climates, and demographic information. From I feel valuable’) and optimism (e.g. ‘When I think
the following Monday onwards, managers were about work today, I feel very optimistic about my
invited to respond to two daily surveys over 10 future’). Participants responded on a five-point
consecutive working days. The morning survey scale from 1 = does not apply at all to 5 = fully
sent at 6 a.m. to be filled in before work assessed applies.
day-level positive psychological capacities and
positive affect. The afternoon survey sent at 4 p.m. Benevolent ethical organizational climate. We
to be filled in after work assessed day-level AL. assessed benevolent ethical organizational climate
Participation was incentivized (€5.60 for the with four items (α = 0.85) from Victor and Cullen
general survey and €1.17 per daily survey). (1988). An example item is: ‘The most important
To assess data quality, we used a self-report concern is the good of all people in the company’.
item of participants’ levels of attentiveness. Single Participants responded on a five-point scale from
surveys were excluded when participants reported 1 = does not apply at all to 5 = fully applies.
‘very low’ or ‘low’ levels of attentiveness (i.e. Principled ethical organizational climate. We
ratings of 1 or 2 on a five-point scale; DeSimone, assessed principled ethical organizational climate
Harms and DeSimone, 2015). Forty-five managers with four items (α = 0.66) from Victor and Cullen
were excluded from subsequent analyses as they (1988). An example item is: ‘In this company, peo-
provided less than three pairs of morning and ple are expected to strictly follow legal or pro-
afternoon surveys. Of the remaining 89 managers, fessional standards’. Participants responded on a
65.17% were male with a mean age of 42.08 years five-point scale from 1 = does not apply at all to
(SD = 9.64). They comprised team managers 5 = fully applies.
(34.83%), department managers (32.58%), divi-
sional managers (25.84%) or senior executives Authentic leadership. In the general survey,
(6.74%). Their average management experience we assessed managers’ AL with 14 items (α = 0.85)
was 10.15 years (SD = 8.08). The number of from the Authentic Leadership Inventory (ALI)
direct reports ranged from 2 to 72 (M = 18.82, (Neider and Schriesheim, 2011; German trans-
SD = 17.33). They worked in different sec- lation by Hörner, Weisweiler and Braun, 2015).
tors, such as manufacturing (23.60%), finance Participants responded on a five-point scale from
(19.10%), communications (12.40%) and health 1 = does not apply at all to 5 = fully applies. In the
services (11.20%). afternoon surveys, we adapted eight items (aver-
Managers in the final sample completed 552 age α = 0.86) for daily measurement. We selected
paired morning and afternoon surveys on the items with the highest factor loadings and contents
same day, and 63% of managers provided at least appropriate for day-level measurement (cf. Bolger,
six pairs of valid data (i.e. completed morning and Davis and Rafaeli, 2003; Gabriel et al., 2018). An
afternoon surveys at least 6 out of 10 days). In example item from the afternoon survey is: ‘Today,
addition, managers completed 155 morning and I encouraged a work group member to voice an
102 afternoon surveys (i.e. one but not the other). opposing point of view (balanced processing)’.


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332 M. P. Fladerer and S. Braun

Participants responded on a six-point frequency We used hierarchical linear modelling to test


scale from 1 = never to 6 = five or more times. the research model as daily observations (level 1)
were nested within persons (level 2). We centred the
Control variables. The day of study was level-1 predictor variables – positive psychological
recorded to control for time-based effects (Ohly capacities and positive affect – at the person’s mean
et al., 2010). As previous research has shown that across days to control between-person confounds
individuals feel more authentic when they are in a (group-mean centring). Level-2 variables – benevo-
positive mood (Lenton et al., 2013), we assessed lent and principled ethical organizational climates
positive affect with five items from the Positive – were standardized and grand-mean centred for
and Negative Affect Schedule (PANAS) (Mackin- interpretation (i.e. relative to the sample average;
non et al., 1999; German translation by Krohne, Ohly et al., 2010). We ran the analysis using the
Egloff and Kohlmann, 1996) in the general survey lme4 package (Bates et al., 2015) in R (R Core
(α = 0.86) and in each of the 10 morning surveys Team, 2017).
(average α = 0.88). We controlled for day-level pos-
itive affect in the subsequent analysis.
Results
Analytical strategy. Missing data is a common
phenomenon in experience sampling studies (Ohly Within-person variance of day-level variables. We
et al., 2010). While the data of the general sur- first determined the proportion of variance in the
vey was complete, the daily surveys showed miss- day-level variables by calculating intra-class corre-
ing values for 20.6% of positive psychological ca- lations (ICC(1)). The proportion of within-person
pacities as well as positive affect (i.e. 183 of 890 variation was 38% for positive psychological ca-
data points) and 26.3% of AL (i.e. 236 of 890 data pacities, 52% for positive affect and 37% for AL.
points). Recent multilevel research demonstrated This finding provides strong evidence for day-to-
that multiple imputation is preferable over listwise day fluctuations of AL, positive psychological ca-
deletion (Grund, Lüdtke and Robitzsch, 2016, pacities and positive affect.
2018). We applied a reversed multiple imputation Descriptive statistics and correlations. Table 1 dis-
procedure for missing level-1 data with the mice plays means, standard deviations and zero-order
package (van Buuren and Groothuis-Oudshoorn, correlations of the study variables at the person
2011), taking into account the multilevel structure level (rbg , above the diagonal) and the day level
(Grund, Lüdtke and Robitzsch, 2018). Follow- (rwg , below the diagonal).
ing Graham, Olchowski and Gilreath (2007), 20
datasets were imputed. Results were pooled with Hypotheses testing. Table 2 summarizes the hier-
the mitml package (Grund, Robitzsch and Lüdtke, archical linear modelling results. The control vari-
2015). able day-level positive affect was not significantly
We examined the factor structure of all items related to day-level AL (γ 10 = 0.04, SE = 0.07,
with multilevel confirmatory factor analysis p = 0.270). Day-level positive psychological capac-
(Muthén and Muthén, 2017; Zacher and Wilden, ities related significantly positively to day-level AL
2014). A model with three factors on the day (γ 20 = 0.17, SE = 0.09, p = 0.034). Managers re-
level (i.e. AL, positive affect and positive psy- ported more AL on days with higher levels of posi-
chological resources) and two factors on the tive psychological capacities. Thus, data supported
person level (i.e. benevolent and principled eth- H1.
ical organizational climates) demonstrated an The relationship between managers’ perceptions
acceptable fit: χ 2 (162) = 473.45, p < 0.001; of benevolent ethical organizational climates and
CFI = 0.930; TLI = 0.914; RMSEA = 0.046; AL was not significant (γ 01 = 0.01, SE = 0.08,
SRMRwithin = 0.059; SRMRbetween = 0.098. p = 0.453). Thus, data did not support H2a. How-
In contrast, a one-factor model did not fit ever, managers’ perceptions of principled ethical
the data well: χ 2 (172) = 2819.37, p < 0.001; organizational climates displayed a significant pos-
CFI = 0.407; TLI = 0.314; RMSEA = 0.132; itive relationship with AL (γ 02 = 0.17, SE = 0.08,
SRMRwithin = 0.163; SRMRbetween = 0.131. p = 0.023). Thus, data supported H2b.1
We therefore deemed the theoretically assumed
measurement model appropriate for hypothesis 1
We tested a moderation model for exploratory purposes.
testing (χ 2 (10) = 2345.92, p < 0.001). Neither benevolent nor principled ethical organizational


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Academy of Management.
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Managers’ Resources for Authentic Leadership 333

Table 1. Study 1: within- and between-person descriptive statistics and correlations

Variable M SD 1 2 3 4 5 6 7 8
1 Day-level positive psychological capacities 3.66 0.75 – 0.62*** 0.35** 0.61*** 0.38*** 0.44*** 0.36*** 0.39***
2 Day-level positive affect 3.09 0.81 0.59*** – 0.33** 0.38*** 0.38*** 0.37*** 0.24* 0.06
3 Day-level authentic leadership 3.45 1.04 0.05 0.06 – 0.20 0.13 0.33** 0.09 0.22*
4 General positive psychological capacities 3.98 0.54 0.61*** 0.38*** 0.20 – 0.57*** 0.49*** 0.34** 0.32**
5 General positive affect 3.76 0.67 0.38*** 0.38*** 0.13 0.57*** – 0.43*** 0.29** 0.16
6 General authentic leadership 4.03 0.43 0.44*** 0.37*** 0.33** 0.49*** 0.43*** – 0.31** 0.36***
7 Benevolent ethical organizational climate 3.28 0.82 0.36*** 0.24* 0.09 0.34* 0.29** 0.31** – 0.34**
8 Principled ethical organizational climate 4.06 0.56 0.39*** 0.06 0.22* 0.32* 0.16 0.36** 0.34** –
9 Study day 5.50 0.00 −0.03 0.01 0.06 – – – – –

Note: Variables 1 to 3 and 10 are day-level variables (level 1) and variables 4 to 8 are person-level variables (level 2). Study day is a
monotonic variable representing the day of the study (ranging from 1 to 10). Day-level positive psychological capacities and day-level
positive affect were assessed in the morning. Day-level authentic leadership was assessed in the afternoon. Within-person correlations
(rwg ) are shown below the diagonal and are based on raw within-person scores (n = 552 days); between-person correlations (rbg ) are
shown above the diagonal and are based on raw between-person scores (N = 89 persons). Correlations for between-person variables
are based on between-person scores. All means (M) and standard deviations (SD) are based on between-person scores. *p < 0.05, **p
< 0.01, ***p < 0.001 (two-tailed).

Table 2. Study 1: results for research model predicting day-level authentic leadership

Variable Estimates SE t p

Intercept (γ 00 ) 3.44 0.08 45.02 <0.001


Level-1 predictors
Day-level positive affect (γ 10 ) 0.04 0.07 0.62 0.270
Day-level positive psychological capacities (γ 20 ) 0.17 0.09 1.86 0.034
Level-2 predictors
Benevolent ethical organizational climate (γ 01 ) 0.01 0.08 0.12 0.453
Principled ethical organizational climate (γ 02 ) 0.17 0.08 2.00 0.023
σ 2 (level-1 variance) 0.42
τ 2 (level-2 variance) 0.64

Note: Pooled estimates of 20 imputed datasets. Sample size after imputation: level 1, n = 890 days; level 2, N = 89 persons. Hypotheses
tests are one-tailed. Level-1 predictor is group-mean centred. Level-2 variables are standardized and grand-mean centred.

Discussion during the day. This finding confirms the resource


investment principle of COR theory that individ-
Theory suggests that AL is dynamic (Luthans and
uals with more resources are better positioned for
Avolio, 2003) as it depends on how managers be-
resource gains (Halbesleben et al., 2014), that is,
have ‘every day, in each and every interaction’
managers invested positive psychological capaci-
(May et al., 2003, p. 248). In this first study, the
ties towards AL on a given day.
fluctuations in managers’ AL found over 10 days
We tested benevolent and principled ethical or-
were substantive. This finding has implications
ganizational climates as contextual resources for
for the development of theoretical models of AL
managers’ AL, focusing on ethical dimensions of
(e.g. to include day-level outcomes for managers
the organizational context (Lemoine, Hartnell and
and employees) and its measurement (e.g. day-level
Leroy, 2019). Only principled but not benevolent
self- and other-ratings) in future research (Fischer,
ethical organizational climates were related to AL.
Dietz and Antonakis, 2017; McClean et al., 2019;
This finding contributes to the idea of resource car-
McCormick et al., 2018; Shamir, 2011). We also
avans, pointing to kinds of contextual resources
saw that when managers experienced high levels of
which foster managers’ engagement in AL (i.e.
positive psychological capacities in the morning,
when managers indicated that their work environ-
they reported a higher frequency of AL displayed
ments provided them with clear ethical guidelines
(May et al., 2003). We conclude that structures
climates interacted with positive psychological capacities
(e.g. codes of conduct) facilitate managers’ sense
to predict AL. Detailed results are available from the first
author upon request. of organizational support for moral behaviour


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Academy of Management.
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334 M. P. Fladerer and S. Braun

(van Prooijen and Ellemers, 2015), whereas caring Johnson, 2012). Although both foci coexist, they
norms may partly conflict with AL such as trans- are activated by (largely) different antecedents and
parency and open, critical feedback (Hewlin, Du- relate differently to subsequent outcomes. Recent
mas and Burnett, 2017). leadership research concentrates on managers’
promotion focus, demonstrating that it facilitates
desirable leadership behaviours as well as follower
Study 2 outcomes (Kark and van Dijk, 2019; Sassenberg
and Hamstra, 2017). In addition, research by Kim
In extension of Study 1, Study 2 addresses the et al. (2019) suggests that people’s promotion
role of managers’ promotion focus as a mediating focus, but not prevention focus, predicts the
mechanism linking managers’ positive psycho- subjective experience of authenticity. In line with
logical capacities to AL. Our reasoning builds these arguments as well as meta-analytical find-
on COR theory and research relating positive ings that a prevention focus is unrelated – in the
psychological capacities to promotion focus (e.g. case of self-efficacy and optimism – or negatively
Halbesleben et al., 2014) as well as theorizing and related – in the case of self-esteem – to positive
research in the tradition of Higgins’ (1997) self- psychological capacities (Gorman et al., 2012;
regulatory focus theory to suggest that promotion Lanaj, Chang and Johnson, 2012), we predict the
focus is a predictor of positive forms of leadership influence of positive psychological capacities on
(Johnson et al., 2017; Kark and van Dijk, 2019; managers’ promotion focus and subsequent AL.
Sassenberg and Hamstra, 2017; Tuncdogan, van The promotion focus is malleable and can be af-
den Bosch and Volberda, 2015). In addition, Study fected by factors within the individual (Higgins,
2 serves as a constructive replication of the previ- 1997, 2000), such as their level of personal re-
ous findings regarding the relationships of positive sources (Lanaj, Chang and Johnson, 2012), which
psychological capacities and ethical organiza- in turn facilitate positive appraisals of challenging
tional climates with AL (Eden, 2002; Miller and situations (Luthans and Youssef-Morgan, 2017;
Bamberger, 2016). Petersen and Youssef-Morgan, 2018). By fram-
ing challenging situations as opportunities, a pro-
motion focus allows managers to remain perse-
Promotion focus as linking mechanism
verant and to invest their resources to attain AL
Regulatory focus theory suggests that people’s be- (Hobfoll, 2001, 2011); that is, managers are more
haviour is motivated by two fundamental moti- likely to focus on self-improvement rather than
vational orientations: promotion and prevention self-protection (Gardner et al., 2005). In con-
(Brockner and Higgins, 2001; Higgins, 1997). A trast, when managers lack personal resources, self-
promotion focus describes a self-regulatory strat- protection and the avoidance of challenges are
egy that is attuned to individuals’ ideals, hopes and triggered (e.g. Heimpel, Elliot and Wood, 2006).
aspirations (Brockner and Higgins, 2001; Higgins, Therefore, in line with COR theorizing (specifi-
1997). It motivates individuals ‘to bring their ac- cally, Corollaries 1, 3 and 4; Halbesleben et al.,
tual selves (their behaviors and self-conceptions) 2014), we expect that low levels of positive psy-
in alignment with their ideal selves (self-standards chological capacities will attenuate managers’ pro-
based on wishes and aspirations of how they would motion focus, while high levels will facilitate it.
like to be)’ (Brockner and Higgins, 2001, p. 35). In Two meta-analyses support this argument: Gor-
contrast, a prevention focus implies goals in accor- man et al. (2012) found positive relationships of
dance with ought selves, that is, one’s felt duties self-esteem and optimism with promotion focus,
and responsibilities (Brockner and Higgins, 2001). and Lanaj, Chang and Johnson (2012) demon-
In line with Higgins’ (1997) theorizing, ‘preven- strated its positive associations with self-esteem
tion focus and promotion focus are independent and self-efficacy.
but not mutually exclusive constructs’ (Neu- Promotion-focused managers are fuelled by the
bert, Wu and Roberts, 2013, p. 289) – that is, motivation to achieve their ideal selves (Christian,
they coexist as separate dimensions rather than Garza and Slaughter, 2011). We therefore expect
opposite ends of the same spectrum. Recent that managers’ promotion focus facilitates AL be-
meta-analytical findings largely affirm this rea- cause it motivates them to align the ideal inner self
soning (Gorman et al., 2012; Lanaj, Chang and with one’s outer self. A promotion focus enables


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Managers’ Resources for Authentic Leadership 335

greater resilience in the light of obstacles and were based on the responses collected from 130
setbacks that would otherwise prevent managers managers. 56.92% of participants were male and
from achieving the ideal ‘authentic self’ (Brockner their average age was 43.75 years (SD = 10.48).
and Higgins, 2001; Kark and van Dijk, 2007; Neu- Participants worked as team managers (31.54%),
bert et al., 2008). Specifically, it helps managers department managers (36.15%), divisional man-
achieve higher levels of self-awareness by reflecting agers (18.46%) or senior executives (13.85%). They
on discrepancies between their actual and ideal had an average management experience of 11.58
selves while maintaining a growth orientation years (SD = 8.70). The number of direct reports
(Kark and van Dijk, 2007). Promotion-focused ranged from 1 to 97 (M = 15.77, SD = 15.99).
managers are more likely to take risks to attain They worked in different sectors, such as manufac-
their ideals and follow their personal beliefs turing (19.23%), finance (16.92%), public admin-
(Brockner and Higgins, 2001), consistent with an istration (10.77%), communications (10.00%) and
internalized moral perspective. A promotion focus health services (7.69%).
enables them to explore alternative routes before Measures. We used the same scales as in the
reaching decisions (Tuncdogan, van den Bosch general survey of Study 1 for positive psycholog-
and Volberda, 2015), to listen to multiple perspec- ical capacities (α = 0.88; Xanthopoulou et al.,
tives and be open to new information (Kark and 2009), benevolent ethical organizational climate
van Dijk, 2007). In sum, we suggest that managers (α = 0.85) and principled ethical organizational
who draw on their positive psychological capac- climate (α = 0.82; Victor and Cullen, 1988), AL
ities are more likely to self-regulate towards their (α = 0.92; Neider and Schriesheim, 2011; Ger-
ideal selves, which in turn facilitates AL: man translation by Hörner, Weisweiler and Braun,
H3: Managers’ positive psychological capacities 2015) and positive affect (α = 0.90; Mackinnon
have an indirect effect on authentic leadership et al., 1999; German translation by Krohne, Egloff
through managers’ promotion focus. and Kohlmann, 1996). We assessed work promo-
tion focus with nine items (α = 0.91; Neubert et al.,
2008), translated into German following a stan-
Methods and results dard procedure (Brislin, 1980). An example item
Sample and procedure. We surveyed 230 is: ‘At work, I am motivated by my hopes and as-
German-speaking managers recruited via the pirations’. Participants responded on a five-point
ISO-certified panel provider respondi at two scale from 1 = does not apply at all to 5 = fully
points in time with a time lag of 10 days to reduce applies. The measure of positive affect was used to
method bias (Podsakoff, MacKenzie and Pod- control for inter-individual differences that may af-
sakoff, 2012). The first questionnaire (t1 ) assessed fect promotion focus (Neubert et al., 2008) and AL
positive psychological capacities, positive affect, (Lenton et al., 2013).
perceptions of benevolent and principled ethical Descriptive statistics, correlations and analytical
organizational climates, and demographic infor- strategy. Table 3 displays descriptive statistics of
mation. The second questionnaire (t2 ) assessed the study variables.
promotion focus and AL. We used confirmatory factor analysis imple-
A total of 148 (64.35%) managers responded mented in the lavaan package (Rosseel, 2012) in
to the survey at both time points. We excluded R (R Core Team, 2017) to test the latent fac-
18 managers who reported low levels of attentive- tor structure of AL, personal resources and the
ness (i.e. ratings of 1 or 2 on a five-point scale) full measurement model in four steps. First, we
(DeSimone and Harms, 2018; DeSimone, Harms tested the higher-order factor structure of the
and DeSimone, 2015).2 All subsequent analyses ALI (Credé and Harms, 2015), which pointed
to the appropriateness of conceptualizing AL as
2
Following the recommendations by DeSimone and
Harms (2018), we analysed the results with and without
data screening. The 18 excluded cases did not differ in = 0.85, t(146) = −2.086, p = 0.039, Cohen’s d = 0.549).
their demographics from the remaining sample. Of the An analysis of the full sample, including all 148 managers,
variables included in our model, only benevolent ethical yielded the same results when testing our hypotheses. De-
work climate differed significantly between the excluded tailed results are available from the first author upon re-
(M = 2.82, SD = 0.75) and included cases (M = 3.26, SD quest.


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336 M. P. Fladerer and S. Braun

Table 3. Study 2: descriptive statistics and correlations

Variable M SD 1 2 3 4 5 6
1 Positive psychological capacities1 4.12 0.61 (0.88)
2 Benevolent ethical organizational climate1 3.36 0.82 0.46*** (0.85)
3 Principled ethical organizational climate1 3.99 0.74 0.35*** 0.46*** (0.82)
4 Positive affect1 3.82 0.72 0.57*** 0.60*** 0.42*** (0.90)
5 Promotion focus2 3.48 0.77 0.48** 0.41*** 0.08 0.48*** (0.91)
6 Authentic leadership2 3.98 0.53 0.64** 0.50*** 0.43*** 0.60*** 0.51*** (0.92)

Note: N = 130. Subscripts indicate point of measurement. Internal consistency (Cronbach’s alpha) in parentheses on the diagonal.
*p < 0.05, *p < 0.01, ***p < 0.001 (two-tailed).

a higher-order factor with four first-order fac- SEA = 0.121 (90% CI: 0.115, 0.127); SRMR =
tors (χ 2 (73) = 149.02, p < 0.001; CFI = 0.911; 0.109).
TLI = 0.889; RMSEA = 0.091 (0.070, 0.111); Finally, for hypotheses testing, we applied latent
SRMR = 0.056) (cf. Braun and Nieberle, 2017; structural equation modelling with bootstrapping
Neider and Schriesheim, 2011; Steffens et al., to determine 95% confidence intervals for each pa-
2016). Detailed results are available from online rameter (Kline, 2015).
supplement S1. Hypotheses testing. Table 4 provides the effect es-
Second, we tested the factor structure of our timates of the hypothesized structural model.
positive psychological capabilities measure in line Positive psychological capacities were positively
with the theoretical structure proposed by Xan- related to AL (β = 0.369, SE = 0.140, p = 0.002),
thopoulou et al. (2007). We compared a higher- supporting H1. Only principled ethical organi-
order factor of positive psychological capacities zational climate displayed a significant positive
with three first-order factors (i.e. self-efficacy, self- relationship with AL (β = 0.232, SE = 0.072,
esteem and optimism) (χ 2 (6) = 21.14, p = 0.002; p = 0.008). For benevolent ethical organiza-
CFI = 0.962; TLI = 0.904; RMSEA = 0.139 tional climate, the relationship was not significant
(90% CI: 0.078, 0.206); SRMR = 0.026) to a (β = 0.008, SE = 0.096, p = 0.946). Thus, parallel
single-factor model (i.e. all indicators loading to Study 1, data supported H2b but not H2a.
on one positive psychological capabilities factor) In addition, H3 proposed an indirect effect of
(χ 2 (3) = 26.836, p < 0.001) and an orthogonal, managers’ positive psychological capacities on AL
first-order model (i.e. three uncorrelated latent fac- through managers’ promotion focus. Positive psy-
tors with indicators loading on their respective fac- chological capacities were positively related to pro-
tor) (χ 2 (3) = 158.395, p < 0.001). Detailed re- motion focus (β = 0.422, SE = 0.160, p = 0.002),
sults are available from online supplement S2. In which in turn related positively to AL (β = 0.291,
line with these results, demonstrating the best fit SE = 0.109, p = 0.007). The indirect effect was sig-
for the theoretically proposed higher-order factor nificant (β = 0.123, SE = 0.063, p = 0.023). Thus,
model, we used positive psychological capacities as data supported H3.3
a higher-order factor with three first-order factors
in the analysis.
Third, we tested the full measurement model
underlying this study. The hypothesized model
with six factors (i.e. positive psychological
capacities, positive affect, promotion focus, 3
For exploratory purposes (cf. To et al., 2018), we also
benevolent and principled ethical organiza- assessed managers’ work prevention focus (Neubert et al.,
tional climate, and AL) showed an acceptable 2008; nine items, α = 0.92). As in previous studies (e.g.
Neubert, Wu and Roberts, 2013; Neubert et al., 2008),
fit (χ 2 (794) = 1189.10, p < 0.001; CFI = 0.886; prevention and promotion focus were positively corre-
TLI = 0.876; RMSEA = 0.062 (90% CI: 0.054, lated (r = 0.354, p < 0.001). However, when testing the
0.069); SRMR = 0.068) and fitted the data sig- proposed structural model with prevention focus as medi-
nificantly better (χ 2 (25) = 1191.06, p < 0.001) ating variable, the relationship of positive psychological
than a one-factor model (χ 2 (819) = 2380.16, capacities with prevention focus was non-significant (β =
0.237, SE = 0.224, p = 0.091) and so was the indirect ef-
p < 0.001; CFI = 0.548; TLI = 0.525; RM- fect (β = 0.063, SE = 0.046, p = 0.114).


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Managers’ Resources for Authentic Leadership 337

Table 4. Study 2: effect estimates of structural model

Structural paths B [95% CI] β SE CR p


Positive psychological capacities1 → Promotion focus2 0.490 [0.177, 0.804] 0.422 0.16 3.06 0.002
Positive psychological capacities1 → Authentic leadership2 0.432 [0.158, 0.707] 0.369 0.14 3.09 0.002
Benevolent ethical organizational climate1 → Authentic leadership2 0.007 [−0.182, 0.195] 0.008 0.10 0.07 0.946
Principled ethical organizational climate1 → Authentic leadership2 0.190 [0.049, 0.331] 0.232 0.07 2.64 0.008
Positive affect1 → Promotion focus2 0.253 [0.060, 0.446] 0.319 0.10 2.57 0.010
Positive affect1 → Authentic leadership2 0.093 [−0.094, 0.279] 0.116 0.10 0.98 0.329
Promotion focus2 → Authentic leadership2 0.293 [0.080, 0.507] 0.291 0.11 2.69 0.007
Positive psychological capacities1 → Promotion focus2 → Authentic leadership2 0.144 [0.020, 0.268] 0.123 0.06 2.27 0.023

Note: Subscripts indicate point of measurement. 95% CI = 95% confidence intervals; B = unstandardized coefficients; CR = critical
ratio; SE = standard error; β = standardized coefficients. Global fit indices: χ 2 (796) = 1198.34, p < 0.001, CFI = 0.883, TLI = 0.874,
RMSEA = 0.062 [90% CI = 0.055, 0.069], SRMR = 0.071.

Discussion focus, and replicated that only a principled ethical


organizational climate positively predicted AL.
Study 2 supported and extended our previous find-
Taken together, findings from the two studies
ings. Pointing to homologous effects on within-
make three key contributions to the management
and between-person levels (Chen, Blieses and
literature. First, we demonstrated that AL varies
Mathieu, 2005; McCormick et al., 2018), man-
from day to day, and that these changes were
agers with higher levels of positive psychologi-
contingent on fluctuations in levels of personal
cal capacities reported more AL. Managers’ pro-
resources. This is a genuinely new insight for AL;
motion focus was an underlying mediator of
aligning with suggestions that incorporating time-
this relationship (Brockner and Higgins, 2001;
based theorizing and within-person variation in
Halbesleben et al., 2014). The findings help to
measurement approaches advances management
better understand reasons why personal resources
research (Kelemen, Matthews and Breevaart,
facilitate managers’ AL from the perspective of
2019; McClean et al., 2019; McCormick et al.,
COR theory. Positive psychological capacities are
2018).
resources through which managers can invest in
Moreover, we contribute to the understand-
self-regulation processes towards growth, aspira-
ing of some of the underlying processes linking
tions and ideals to then attain AL (Halbesleben
personal resources to AL, which is a crucial
et al., 2014; Hobfoll et al., 2018; Kark and van
albeit largely untested element of AL theory
Dijk, 2007). Results also replicated findings from
(Gardner et al., 2005; Luthans and Avolio, 2003;
Study 1 for ethical organizational climates, con-
Sparrowe, 2005). We show that managers with
firming that managers draw from ethical guidelines
higher levels of personal resources are more likely
and codes of conduct for AL (Lemoine, Hartnell
to regulate behaviour towards their ideal selves
and Leroy, 2019; May et al., 2003), while norms of
(i.e. promotion focus; Kark and van Dijk, 2019).
care and consideration appear less relevant.
Focusing on personal hopes and aspirations
enables managers to accumulate further resources
General discussion (Halbesleben et al., 2014). We thus found evidence
of a ‘gain spiral’ for AL, as described in COR
The present research advances current theorizing theory (Hobfoll, 2001, 2011).
of AL in light of COR theory. In Study 1, AL var- Our work also speaks to the importance of
ied from day to day, and these fluctuations were virtue ethics for AL (Lemoine, Hartnell and
significantly predicted by managers’ personal re- Leroy, 2019), positioning them as part of a re-
sources (i.e. self-esteem, self-efficacy, optimism) on source caravan from the perspective of COR
a given day. Results also provided initial results to theory (Hobfoll et al., 2018). Principled ethical or-
suggest that only principled, but not benevolent ganizational climates incorporate moral reference
ethical organizational climates represent a stable, points to establish ethical guidelines and standards
contextual resource for AL. Study 2 extended these in organizations (Victor and Cullen, 1988). Inter-
initial results, showing an indirect relationship be- estingly, managers’ perceptions of a benevolent
tween personal resources and AL via promotion ethical organizational climate were not related


C2020 The Authors. British Journal of Management published by John Wiley & Sons Ltd on behalf of British
Academy of Management.
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338 M. P. Fladerer and S. Braun

to AL across the two studies. Benevolent ethical the generalizability of results (Chandler, Mueller
organizational climates attune employees to the and Paolacci, 2014). While this concern applies
good of individuals within the organization and to many forms of sampling (e.g. snowball or
the collective as the basis for ethical judgements network samples), we readily acknowledge this
(Kish-Gephart, Harrison and Treviño, 2010; Mar- limitation.
tin and Cullen, 2006). Focusing on what is ‘good We took measures to address method biases
for us’ as opposed to what is ‘the right thing to do’ (Podsakoff, MacKenzie and Podsakoff, 2012).
may create moral tensions for managers who seek Study 1 assessed the predictor and criterion vari-
to attain AL (Hewlin, Dumas and Burnett, 2017; ables across 10 days, and level-1 variables were
Koerner, 2014). AL differs from other positive person-mean centred (Gabriel et al., 2018). In
leadership styles by being ‘a markedly distinct Study 2, we separated predictor and criterion vari-
theoretical approach to normative morality’ ables via two points of measurement. In both stud-
(Lemoine, Hartnell and Leroy, 2019, p. 159). ies, we followed recommendations for data screen-
Compared to being a servant leader, for example, ing to enhance quality (DeSimone and Harms,
AL is less focused on caring for others and more 2018; DeSimone, Harms and DeSimone, 2015).
about acting on the basis of one’s personal values Future longitudinal research could study differ-
(Lemoine, Hartnell and Leroy, 2019). ent forms of dynamics in AL behaviour, such
as growth through interventions (Nübold, van
Quaquebeke and Hülsheger, 2019), and include
Limitations and directions for future research
follower outcomes in response to short-term fluc-
The research presented here has limitations, which tuations of AL (Gill and Caza, 2018) as well as
need to be considered when interpreting the re- carry-over effects on following days.
sults. We adapted an eight-item version of the ALI Finally, we suggest for future work to incorpo-
(Neider and Schriesheim, 2011) to measure AL rate other personal resources such as courage (May
as a day-level construct which captured significant et al., 2003). This could also include investigating
variations across days (37% within-person vari- the interactions of different resources and how or-
ance). A positive correlation between the ALI (i.e. ganizational culture in a broader sense affects these
measuring AL as a relatively stable inter-individual processes (Hobfoll et al., 2018). We did not con-
difference factor) and the day-level measure ceptualize promotion focus as a mediator in the
(r = 0.33, p < 0.01) was observed. While we found relationship of organizational climate and AL on
initial evidence for the validity of the day-level the grounds that mediating processes are likely to
measure (Gabriel et al., 2018; Ohly et al., 2010), fu- differ between personal and contextual resources.
ture research should refine and validate it further. For example, ethical work climates might facilitate
Self-reports were an appropriate data source for managers’ AL through heightened levels of moral
personal resources and AL (Hewlin, Dumas and awareness (van Sandt, Shepard and Zappe, 2006)
Burnett, 2017; Weiss et al., 2018). Weiss et al. or moral efficacy (May et al., 2003). However, this
(2018) pointed out that core aspects of AL, such is an issue for future research to resolve.
as the consistency of thoughts and behaviours,
cannot be evaluated by other persons (see also
Hewlin, Dumas and Burnett, 2017; Knoll et al.,
Practical implications
2015). Research found significant positive correla-
tions between leader and follower ratings of AL The research presented here has important im-
(Nübold, van Quaquebeke and Hülsheger, 2019). plications for management practice. Managers’
Also, the level of granularity (i.e. observing man- positive psychological capacities matter for AL,
agers’ behaviours on a specific day) in experi- not only generally, but also on a day-to-day basis.
ence sampling studies puts the manager ‘in the Hence, organizations are called upon to foster
best position to evaluate her/his own behaviors’ managers’ personal resources consistently. We
(McClean et al., 2019, p. 493). The use of on- recommend that businesses introduce daily inter-
line panels is common in organizational research ventions (e.g. reflection exercises) to strengthen
(Buhrmester, Kwang and Gosling, 2011; Peer et al., managers’ positive psychological capacities
2017). Non-naivety among frequent participants throughout the working week (Lanaj, Foulk and
and self-selection into panels may pose threats to Erez, 2019; Luthans et al., 2006).


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Academy of Management.
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Managers’ Resources for Authentic Leadership 339

The finding that promotion focus links positive Barraquier, A. (2011). ‘Ethical behaviour in practice: decision
psychological capacities to AL suggests that in- outcomes and strategic implications’, British Journal of Man-
agement, 22, pp. S28-S46.
terventions targeting self-regulation towards ideal
Bates, D., M. Mächler, B. Bolker and S. Walker (2015). ‘Fitting
selves will benefit managers’ AL. Promotion fo- linear mixed-effects models using lme4’, Journal of Statistical
cus can be fostered through priming of gains and Software, 67, pp. 1–48.
positive behavioural role modelling (Kark and van Bolger, N., A. Davis and E. Rafaeli (2003). ‘Diary methods: cap-
Dijk, 2007). Managers who act in line with their turing life as it is lived’, Annual Review of Psychology, 54,
pp. 579–616.
ideal selves can also be role models for others in
Braun, S. and K. W. A. M. Nieberle (2017). ‘Authentic leadership
the organization to speak up when they witness un- extends beyond work: a multilevel model of work–family con-
ethical behaviour (Monzani, Braun and van Dick, flict and enrichment’, The Leadership Quarterly, 28, pp. 780–
2016). The finding that principled ethical organi- 797.
zational climates facilitate AL supports the role of Breevaart, K., A. Bakker, J. Hetland, E. Demerouti, O. K. Olsen
and R. Espevik (2014). ‘Daily transactional and transforma-
compliance management (Treviño et al., 1999). We
tional leadership and daily employee engagement’, Journal of
recommend that businesses reinforce ethical guide- Occupational and Organizational Psychology, 87, pp. 138–157.
lines and standards through a consistent agenda Brislin, R. W. (1980). ‘Translation and content analysis of oral
for internal stakeholders (Kish-Gephart, Harrison and written material’. In H. C. Triandis and J. W. Berry (eds),
and Treviño, 2010). Handbook of Cross-Cultural Psychology, Vol. 1, pp. 389–444.
Boston, MA: Allyn & Bacon.
Brockner, J. and E. T. Higgins (2001). ‘Regulatory focus theory:
implications for the study of emotions at work’, Organizational
Conclusion Behavior and Human Decision Processes, 86, pp. 35–66.
Buhrmester, M., T. Kwang and S. D. Gosling (2011). ‘Ama-
While AL is highly valued in today’s business zon’s Mechanical Turk: a new source of inexpensive, yet
world, scholars and practitioners must acknowl- high-quality, data?’, Perspectives on Psychological Science, 6,
pp. 3–5.
edge that managers often struggle to act in line
Byrne, A., A. M. Dionisi, J. Barling, A. Akers, J. Robertson, R.
with their authentic selves at work. Positive psy- Lys et al. (2014). ‘The depleted leader: the influence of leaders’
chological capacities and principled ethical organi- diminished psychological resources on leadership behaviors’,
zational climates are important resources to guide The Leadership Quarterly, 25, pp. 344–357.
managers on the path towards AL. We call for a Chandler, J., P. Mueller and G. Paolacci (2014). ‘Nonnaı̈veté
among Amazon Mechanical Turk workers: consequences and
stronger integration of COR and leadership the-
solutions for behavioral researchers’, Behavior Research Meth-
ory, as well as studies of the day-to-day dynamics ods, 46, pp. 112–130.
that managers experience. Chen, G., P. D. Bliese and J. E. Mathieu (2005). ‘Conceptual
framework and statistical procedures for delineating and test-
ing multilevel theories of homology’, Organizational Research
Methods, 8, pp. 375–409.
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C 2020 The Authors. British Journal of Management published by John Wiley & Sons Ltd on behalf of British
Academy of Management.
14678551, 2020, 2, Downloaded from https://onlinelibrary.wiley.com/doi/10.1111/1467-8551.12396 by Quaid-I-Azam University, Wiley Online Library on [11/05/2023]. See the Terms and Conditions (https://onlinelibrary.wiley.com/terms-and-conditions) on Wiley Online Library for rules of use; OA articles are governed by the applicable Creative Commons License
Managers’ Resources for Authentic Leadership 343

Martin P. Fladerer is Research Associate at the Center for Leadership and People Management, LMU
Munich. His research focuses on leadership and identity processes in organizational contexts.

Susanne Braun is Professor in Leadership at Durham University Business School. Her research focuses
on leadership, identity dynamics and the dark triad in organizations.

Supporting Information
Additional supporting information may be found online in the Supporting Information section at the end
of the article.

Table S1: Study 2: Test of higher-order structure of authentic leadership


Table S1: Study 2: Test of higher-order factor structure of positive psychological capacities


C2020 The Authors. British Journal of Management published by John Wiley & Sons Ltd on behalf of British
Academy of Management.

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